The educational fees have increased tremendously. Thus, there are a lot of students who are unable to obtain education from an institution of their choice. However, thanks to the education loans given out by banks and NBFCs (non-banking financial companies) students can breathe with a sigh of relief. The financial institutions provide these students loans at much lower interest rates when compared with the interest rates given out by traditional financiers and loan sharks. All they need to do, in order to make use of these loans is fulfill the required student loan eligibility. There are also a number of discounts on interest rates provided to meritorious students and women.
An education loan takes care of all of your study-related expenses. The different expenses covered by the education loans range from cost of college fees, tuition fees, living expenses, travel expenses, etc. There are a number of study courses covered by the education loans in the fields of science, arts, commerce, mass media, etc. Thus, students can choose and opt for the course which they want. However, there are a lot of students who do not meet the required eligibility criteria set by financial institutions. For those of us, this article will highlight a few tips to improve one’s student loan eligibility.
These tips are as follows:
- Co-borrower: The first criterion to avail an education loan in India is your nationality. You need to be an Indian citizen in the age-group of 18 to 35 years. This criterion is something which cannot be changed or improved. However, the criterion of co-borrower can be improved. You need an earning member of the Indian society who must be willing to co-sign the loan amount. This co-borrower can be any of your family members, siblings, etc. He or she shall be the primary debtor. Thus, you need to make sure that they have a good credit history and score. Credit history is the financial report of one’s financial activities.
- Documents: Make sure that you have all the required documents with you for quick sanctioning. The different documents that you need to fulfill your education loan eligibility are your educational credentials, co-borrowers credit history, address proof and identity proof.
- Educational background: Make sure that you have cleared all the pre-requisite examinations to enroll for the course. Also, the financial institutions scrutinize your educational background and credentials. Thus, make sure that you have scored well in all of your previous and current examinations.
- Collateral: The collateral amount required to make use of an education loan is the quantum of the loan amount you want to borrow and the primary lenders credit history. This collateral can be any of your residential properties, non-agricultural land, fixed deposit, life insurance policy, etc. Thus, make sure that you have all the required collateral to procure an education loan. The marginal amount that you pay also decides your student loan eligibility. Thus, opt for higher marginal amount for easy loan processing.
Hope this tips will help you improve your education loan eligibility. Good luck and all the best.